Ticketmaster is the largest primary ticket outlet and secondary ticket marketplace in the United States. When it comes to ticket resales on their platform, Ticketmaster applies various fees and takes a percentage of the resale price as commission. Understanding Ticketmaster’s resale policies and fees can help buyers and sellers make informed decisions when using their platform.
Ticketmaster’s Role in the Secondary Ticket Market
In addition to being a leading primary ticket seller for events, Ticketmaster also facilitates ticket resales through its Ticketmaster Resale (TMR) platform. This is an online secondary marketplace that allows ticket holders to resell event tickets they can no longer use.
Ticketmaster acquired TMR in 2008 to gain a foothold in the growing secondary ticket market. By having its own resale exchange, Ticketmaster could compete with other large secondary sellers like StubHub.
TMR gives Ticketmaster a way to double-dip – earning fees both on the initial ticket sale and then again on the resale. Today, it is one of the largest secondary exchanges along with StubHub. TMR resale inventory frequently appears in Ticketmaster’s primary search results.
How Ticket Resales Work on Ticketmaster
If ticket holders can no longer attend an event they bought tickets for through Ticketmaster, they can list those tickets for resale on TMR. The tickets can be priced dynamically based on demand.
Buyers can search TMR for tickets to sold out events or for better seats than those available through primary sales. Ticketmaster combines resale inventory with primary inventory in search results.
If a buyer purchases a resale ticket on TMR, the seller gets paid the resale price less Ticketmaster’s commission. The buyer pays the ticket price plus a 10-20% “Buyer’s Premium” and any applicable delivery fees.
Seller’s Commission Fee
On each resale transaction, Ticketmaster takes a commission from the seller. The seller commission varies based on the event type:
Event Type | Seller Commission % |
---|---|
NFL, NBA, NHL | 15% |
MLB | 12% |
NCAA Football, Basketball | 10% |
MLS | 15% |
Concerts | 20% |
Other Events | 20% |
So for example, if a concert ticket was initially purchased for $100 and then resold for $200, the seller would get back $160 after Ticketmaster took its 20% or $40 commission.
Buyer’s Premium
On top of the ticket’s resale price, Ticketmaster also charges the ticket buyer a 10-20% “Buyer’s Premium”:
Event Type | Buyer’s Premium % |
---|---|
NFL, NBA, NHL | 10% |
MLB | 10% |
NCAA Football, Basketball | 10% |
MLS | 15% |
Concerts | 20% |
Other Events | 20% |
Continuing the earlier example, if the ticket was resold for $200, the buyer would pay $240 – the $200 resale price plus a 20% Buyer’s Premium of $40.
Delivery Fees
Ticketmaster also charges delivery fees to buyers on resale transactions. This covers the cost of getting the tickets to the buyer and includes:
- PDF/Mobile Ticket Delivery: $5.95 per ticket
- Standard Mail Delivery: $14.95 per order
- UPS Next Day Air: $24.95 per order
- Will Call Pick Up: $8.00 per order
Delivery method options vary by event. For the $200 resale ticket example, if PDF delivery was selected, the total cost would be $245.95 ($200 ticket + $40 Buyer’s Premium + $5.95 delivery fee).
Why Ticketmaster Charges Resale Fees
Ticketmaster generates significant revenue through the various commissions and fees charged on ticket resales. However, the company states that these fees are justified for the following reasons:
Cover Operating Costs
Developing and maintaining an online ticket marketplace requires substantial technology investment and staffing. Charging service and delivery fees helps offset Ticketmaster’s costs for operating TMR.
Seller Verification
Before listing tickets for resale, Ticketmaster verifies each seller is in possession of the tickets being posted. This helps reduce fraud and bad actors.
Buyer Protections
If an event is canceled or a buyer does not receive valid tickets, Ticketmaster provides refunds or comparable replacement tickets. The fees provide a fund to pay out these buyer protections.
Allow Lower Ticket Prices
The commissions Ticketmaster collects from sellers allow the company to potentially lower prices on other tickets. If fees weren’t charged, base ticket prices may have to be set higher.
Criticisms of Ticketmaster’s Resale Fees
While Ticketmaster defends its fees, the company also faces criticism that these policies unfairly maximize profits at the expense of fans. Some common complaints include:
Double-Dipping on Fees
Ticketmaster makes money from fees both on the initial ticket sale and again on the resale. Critics argue they shouldn’t get to double-dip.
Lack of Transparency
Fees are only shown late in the checkout process. Fans accuse Ticketmaster of using “hidden fees” to extract more money.
Aggressive Pricing
Fees in the 10-20% range feel excessive to many buyers and sellers. It leads to perceptions of Ticketmaster price gouging.
No Direct Seller-Buyer Transactions
Unlike some platforms, Ticketmaster does not allow direct seller-to-buyer sales. Everything goes through Ticketmaster, allowing them to collect fees.
TMR Listing Policies
In addition to the commissions and fees, Ticketmaster also has several policies that govern how tickets are listed for sale on TMR. These include:
No Setting Minimum Prices
Sellers cannot set a minimum resale price for their tickets. The tickets have to be priced based on current market demand.
No Cancellation
Once a ticket is listed, the listing cannot be cancelled by the seller. The ticket has to be sold or the listing will expire after a set period of time.
Limits on Markups
For some major sports leagues like the NFL, Ticketmaster limits how much sellers can inflate ticket prices. This aims to protect fans from extreme markups.
Removal of Fraudulent Listings
Ticketmaster frequently monitors for fraudulent or speculative ticket listings. These are removed to ensure inventory is authentic.
Alternatives to Ticketmaster Resale
Fans and ticket sellers do have some alternatives to using TMR for ticket resales if they are not comfortable with Ticketmaster’s fees and policies. Other large secondary ticket marketplaces like StubHub, Vivid Seats, and SeatGeek provide an alternative platform for buyers and sellers to transact.
There are also options to resell tickets through classified ads, Facebook ticket groups, fan forums, or in-person. However, these methods may be less convenient and lack buyer and seller protections.
Sellers can also return tickets back to the venue box office to resell. But the box office will charge its own fees and may not resell the tickets at top dollar like an open marketplace would.
Is Ticketmaster Resale Worth the Fees?
In the end, whether Ticketmaster’s resale fees are worth it or not depends on the individual situation and event. For popular high-demand tickets where selling at market price matters, the fees may be justified to maximize sale revenue and reach Ticketmaster’s large buyer base. The protections for buyers and sellers also add value.
But for smaller events or situations where tickets just need to be unloaded at any price, sellers may want to look to lower cost alternatives. And buyers can sometimes find better seat selection or cheaper prices from competing resale platforms.
Ticketmaster Resale still holds some key advantages – integration with Ticketmaster’s primary ticket platform, a wide potential buyer pool, and buyer guarantees. But the higher fees mean it is not necessarily the best option for every ticket resale situation.
Conclusion
Ticketmaster Resale provides a major secondary ticket outlet under the Ticketmaster umbrella of services. Like Ticketmaster’s primary ticket sales, resale transactions come with a variety of fees – commissions for sellers and additional premiums and delivery fees for buyers.
Ticketmaster nets significant revenue from these resale fees, although the company contends they are justified to protect fans and recoup operating costs. Critics argue the fees are excessive and lack transparency.
For those looking to get the maximum resale price for tickets to high-demand events, Ticketmaster Resale’s advantages often outweigh the fees. But budget-conscious fans or those with tickets to resell for smaller events may want to consider lower-cost alternative marketplaces.
Understanding the full fee structure ahead of time can at least allow Ticketmaster customers to go into resale transactions with eyes wide open. With the right expectations about fees, both buyers and sellers can make informed decisions on whether to utilize Ticketmaster Resale versus other alternatives.